Refer to the accompanying figure,which shows both short-run (S₁),and long-run (S₂)demand and supply curves.If there is a $4 binding price ceiling imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

A) There will be a shortage of 1.5 million units.
B) There will be a shortage of 800,000 units.
C) There will not be a shortage; there will be a surplus.
D) There will be a shortage of 2 million units.
E) There will be a shortage of 500,000 units.

Question

Refer to the accompanying figure,which shows both short-run (S₁) ,and long-run (S₂) demand and supply curves.If there is a $4 binding price ceiling imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

A) There will be a shortage of 1.5 million units. 
B) There will be a shortage of 800,000 units. 
C) There will not be a shortage; there will be a surplus. 
D) There will be a shortage of 2 million units. 
E) There will be a shortage of 500,000 units.

Quizplus · Accepted Answer

The Answer of Refer to the accompanying figure,which shows both short-run (S₁),and long-run (S₂)demand and supply curves.If there is a $4 binding price ceiling imposed on a pharmaceutical drug,what will be the amount of the disequilibrium in the short run?

A) There will be a shortage of 1.5 million units. 
B) There will be a shortage of 800,000 units. 
C) There will not be a shortage; there will be a surplus. 
D) There will be a shortage of 2 million units. 
E) There will be a shortage of 500,000 units.

Refer to the Accompanying Figure,which Shows Both Short-Run (S₁),and Long-Run